Network Effects in the changing headhunting industry:

소개

This paper explains the concept of network effects and applies the theories and earlier studies to a case study. We examined the key aspects regarding network effects worth considering for the internet-based headhunting platform called JobGo that will be launched in a near future. We find that there are many things that are essential to know about when trying to compete on the market with network effects and that theories and earlier studies give a very good insight in how the market works. We conclude with a discussion on what JobGo should learn from this study.

목차

Network Effects in the changing headhunting industry:
Introduction
PART ONE: Earlier studies
PART TWO: CASE JobGo
Conclusion
Bibliography

본문내용

Introduction
When a Headhunter is looking for a “man for the job” he has to do research, and find out as much as he can about different candidates in order to evaluate whether to choose candidate one or candidate two. Companies pay him well for this expertise, but are headhunters old-fashioned?
This paper will introduce a company that wants to lower the costs for finding the right person for the right job.
Positive network externalities, or network effects, are today in the headlines mostly through social media like Facebook and Myspace, where users receive additional value from every new user that joins the social community. That is, the more people join to the community, the better the service works and the more each user will enjoy the service.
JobGo is a new online headhunting service and its success depends on network effects taking place in order to become the leading platform for professionals who want to connect with professional contacts, companies and future new possible employers.
This paper is based on previous studies and theories of network effects: how to reach and sustain network effects by different means and, moreover, implications of network effects on market structure. The theoretical framework is then applied on the JobGo-service, elaborating on how JobGo could reach and maintain network effects and thereby market power and how it will affect the recruiting market.

참고자료

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